Property and Real Estate Disputes in Thailand. Property is one of the most litigated areas in Thailand. Disputes range from contested land boundaries to breach of condominium sale agreements, landlord–tenant conflicts, inheritance fights, and enforcement of mortgages. Unlike some jurisdictions where specialized property tribunals exist, most disputes in Thailand fall under the Civil and Commercial Code (CCC), the Land Code, and related statutes, with the Civil Courts and occasionally the Administrative Courts handling resolution. Understanding the substantive law, procedure, and common pitfalls is essential for both local and foreign parties involved in Thai property transactions.
1. The Legal Framework
Civil and Commercial Code (CCC)
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Governs ownership, leases, mortgages, usufructs, superficies, servitudes, and contracts.
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Contains default rules for remedies in case of breach.
Land Code B.E. 2497 (1954)
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Regulates issuance of land title deeds, transfers, and restrictions on foreign ownership.
Condominium Act B.E. 2522 (1979)
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Provides rules on foreign quota, joint ownership of common property, and obligations of developers and co-owners.
Civil Procedure Code
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Sets procedures for litigation, injunctions, interim measures, and enforcement of judgments.
Other Relevant Laws
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Land and Building Tax Act (2019) – disputes over tax liabilities.
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Foreign Business Act (1999) – indirectly affects property disputes where nominee structures are alleged.
2. Land Ownership and Boundary Disputes
Boundary disputes are among the most frequent real estate conflicts.
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Title Deed Conflicts (Chanote vs. Nor Sor 3): Disputes arise when one party holds a Chanote (full ownership) and a neighbor holds only a Nor Sor 3 (confirmed use). Courts rely heavily on cadastral surveys and Land Department records.
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Encroachment Cases: If construction crosses a boundary, courts may order removal, damages, or forced transfer with compensation depending on whether encroachment was willful or innocent.
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Overlap of Title Deeds: Occasionally, two Chanotes cover the same parcel due to administrative error. Courts examine the chain of title and may void improperly issued deeds.
Practical note: Engaging a licensed surveyor early can prevent litigation, as courts give weight to official Land Office survey reports.
3. Sale and Purchase Disputes
Breach of Sale Agreement
Typical claims include failure to transfer property on the agreed date, refusal to complete despite deposit payments, or disputes over contract conditions.
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Buyers often seek specific performance (court order compelling transfer at the Land Office).
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If the seller has sold to a third party, the buyer may pursue damages instead.
Deposit Forfeiture and Double Sales
Thai law allows sellers to keep deposits if the buyer defaults, but courts scrutinize fairness. In cases of double sales, priority usually belongs to the buyer who first registers at the Land Office, not necessarily the one who contracted first.
4. Condominium Disputes
The condominium sector is especially prone to disputes involving foreigners.
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Foreign Quota Violations: If the 49% foreign quota is exceeded, transfers may be void. Buyers may sue developers for misrepresentation.
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Defects in Common Property: Owners can sue developers for construction defects in common areas within a statutory limitation period.
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Management Disputes: Conflicts between juristic persons (condo committees) and owners often involve misuse of maintenance fees or unauthorized resolutions.
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Delayed Handover: Developers failing to deliver units on time may face damages or be compelled to refund deposits.
5. Lease and Tenancy Conflicts
Under the CCC:
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Leases over 3 years must be registered; otherwise, they are enforceable only up to 3 years.
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Disputes often involve termination for non-payment of rent, refusal to vacate, or attempted eviction without notice.
For commercial leases, disputes may also concern:
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Responsibility for property taxes, common-area maintenance, or repairs.
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Sublease and assignment rights.
Courts typically enforce registered lease terms strictly. However, equitable principles apply in eviction cases where landlords must follow proper legal process before repossession.
6. Mortgages and Foreclosure
Banks and lenders frequently litigate foreclosure proceedings:
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Mortgagees must sue in court for judgment before the Legal Execution Department can auction the property.
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Priority is based on the order of registration at the Land Office.
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Debtors often resist foreclosure by alleging invalid loan terms, excessive interest, or improper notice.
Complex disputes arise when multiple mortgages, leases, or usufructs overlap. Courts carefully review priority dates and annotations on the title deed.
7. Inheritance and Family-Related Disputes
Property disputes are common among heirs and surviving spouses.
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Inheritance claims: Thai succession law divides estates according to statutory classes of heirs. If the deceased owned land or condos, disputes arise over division, management, and sales.
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Marital property: Under Thai family law, property acquired during marriage is usually community property, creating disputes during divorce or succession.
Where foreign heirs are involved, restrictions on foreign land ownership complicate inheritance. Foreign heirs often must dispose of inherited land within a year.
8. Servitudes, Easements, and Rights of Way
Thai law recognizes servitudes (similar to easements) allowing use of another’s land for access, utilities, or support.
Disputes occur when:
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Access roads are blocked by the servient owner.
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Terms of the servitude are ambiguous.
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A buyer of the servient land refuses to honor the servitude.
Because servitudes are registrable at the Land Office, courts usually enforce them against subsequent purchasers if duly registered.
9. Administrative and Regulatory Disputes
Some disputes arise not between private parties but against government agencies:
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Land Expropriation: Compensation disputes when land is taken for public projects.
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Zoning and Building Permits: Developers challenging denial of permits or neighboring owners opposing permits granted.
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These are usually heard by the Administrative Courts.
10. Dispute Resolution Avenues
Court Litigation
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Property cases are typically filed in Civil Courts of first instance.
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Appeals may be taken to the Court of Appeal and Supreme Court.
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Interim relief such as injunctions and provisional seizures is available.
Arbitration
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Increasingly used in large commercial real estate projects.
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The Arbitration Act (2002) allows domestic and foreign arbitral awards to be enforced in Thailand, subject to limited public policy exceptions.
Mediation
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Courts encourage mediation at pre-trial stage.
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Effective in boundary disputes or condominium management conflicts where parties have ongoing relationships.
11. Preventive Strategies
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Title Search: Always verify encumbrances and boundary records at the Land Office before transactions.
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Clear Contracts: Draft explicit terms on deposits, remedies, and dispute resolution forums.
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Registration: Register leases, mortgages, servitudes, and usufructs to bind third parties.
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Due Diligence: For condos, check the foreign quota, construction permits, and developer’s track record.
Conclusion
Property and real estate disputes in Thailand arise in multiple contexts—ownership boundaries, defective sales, condominium management, leases, inheritance, and mortgage foreclosures. The Civil and Commercial Code, Land Code, and special statutes provide a framework, but outcomes turn heavily on registration records at the Land Office and careful presentation of evidence.
Foreign and local investors alike should recognize that Thailand’s system is registration-driven: what appears on the title deed and Land Office records usually determines priority and enforceability. By conducting rigorous due diligence, documenting agreements carefully, and understanding the remedies available, parties can both reduce the risk of disputes and improve their position if litigation becomes necessary.
